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Highly Efficient, 5kW CHP Fuel Cells Demonstrating Durability and Economic Value in Residential and Light Commercial Applications

Rhonda StaudtPresented by: John VogelPlug Power Inc.June 10, 2010ARRAH2003

OVERVIEW

Timeline• Project start: October 2009• Project end: September 2012• 40% complete

Highly Efficient CHP Fuel Cell Durability and Economic Value Demonstration

Budget• Total project funding: $6.7M

– DOE: $3.35M– Plug Power: $3.35M

• Funding in FY09: $1.3M• Funding in FY10: $1.2M

Barriers• Barriers addressed:

– A. Durability– B. Cost– C. Performance

Partners• Interactions/collaborations:

– University of California Irvine– Sempra Energy

• Project leads:– Dr. Jack Brouwer– Randy Brown

The objective of this demonstration program is to substantiate the durability and economic value of GenSys Blue and verify its technology and commercial readiness for the marketplace.

Highly Efficient CHP Fuel Cell Durability and Economic Value Demonstration

OBJECTIVES - RELEVANCE

Highly Efficient CHP Fuel Cell Durability and Economic Value Demonstration

MILESTONES - APPROACH

Highly Efficient CHP Fuel Cell Durability and Economic Value Demonstration

Internal reliability fleet testing – Plug Power labs Latham, NY

External evaluation – Sempra and UCI in Southern California

MILESTONES - APPROACH

The design task for the program is complete yielding a more robust, better performing, lower cost system.

Highly Efficient CHP Fuel Cell Durability and Economic Value Demonstration

Plug Power design initiatives:• Controls and efficiency improvements

– Start-up, thermal response and heat modulation improvements, improved thermal recovery

– From 89% peak total efficiency to 94%• Manufacturability improvements

– Enclosure, piping, insulation and wiring– Reduced build time from > 120 hours to < 50

• Design for certification– Integrated with commercial automatic burner

control system– Reduced exhaust temperature

• Reduction in material cost– From ~$90k to $58k in volumes < 20

TECHNICAL ACCOMPLISHMENTS – SYSTEM DESIGN

UCI is leading the system modeling effort. The steady state model shows good correlation; the

dynamic model is experiencing difficulty converging due to our system architecture.

Highly Efficient CHP Fuel Cell Durability and Economic Value Demonstration

TECHNICAL ACCOMPLISHMENTS – SYSTEM MODELING

UCI is leading the system modeling effort. The steady state model shows good correlation; the

dynamic model is experiencing difficulty converging due to our system architecture.

Highly Efficient CHP Fuel Cell Durability and Economic Value Demonstration

TECHNICAL ACCOMPLISHMENTS – SYSTEM MODELING

Highly Efficient CHP Fuel Cell Durability and Economic Value Demonstration

Sempra Energy in California is assisting the team with site selection in their territory for external reliability testing:• LPA campus in Irvine, CA (3 systems)• Sempra Energy employee homes (3 systems)

TECHNICAL ACCOMPLISHMENTS – SITE SELECTION

Highly Efficient CHP Fuel Cell Durability and Economic Value Demonstration

Internal fleet dashboard metrics:• 5 systems commissioned, 1 in process• Over 3500 run hours• 8 MWhrs of electricity and 30MWhrs of heat produced• Unadjusted startup reliability of 80%• Unadjusted heat availability of 95%• Unadjusted CHP availability of 76%• CHP availability (supplier delivery issues removed) of 92%

TECHNICAL ACCOMPLISHMENTS – LONG TERM TESTING

Highly Efficient CHP Fuel Cell Durability and Economic Value Demonstration

NYS Assemblyman Jim Tedisco with Union College faculty, Plug Power and National Grid

employees at ribbon cutting ceremony (DOE 7C)

TECHNICAL ACCOMPLISHMENTS – OUTREACH

• Ribbon cutting ceremony for GenSys Blueinstallation at Union College in Schenectady, NY

• Alumni Day at Union College• New York State Science, Technology,

Engineering and Mathematics (STEM) Educational Collaborative at Ballston Spa High School in Ballston Spa, NY

• United States Fuel Cell Seminar in Palm Springs, California, GenSys Blue: Fuel Cell Heating Appliance

• Ballston Spa High School technology field trip

• Plans for system on display at the Schenectady Museum

• UCI takes over in California

Communication, education and outreach events to date:

Highly Efficient CHP Fuel Cell Durability and Economic Value Demonstration

• University of California Irvine – National Fuel Cell Research Center– University, cost sharing partner within the program– NFCRC develops a system model for product development, refining controls and improving operation

• Sempra Energy– Industry, non-cost sharing partner within the program– Sempra Energy is providing sites for testing and will assist in interconnection and fleet evaluation

• LPA– Industry, non-cost sharing partner outside of the program– LPA will act as a site host and will assist in site design for the three systems installed on their campus

• California Air Quality Management District (AQMD)– State agency, non-cost sharing partner outside of the program– AQMD will evaluate fleet data against California air quality standards

• National Renewable Energy Laboratory (NREL)– National lab, non-cost sharing partner outside of the program– NREL will assist in fleet data analysis

COLLABORATIONS

Highly Efficient CHP Fuel Cell Durability and Economic Value Demonstration

• 1st GO/NO GO Decision June 2010– Prior to shipping systems to California the team will hold a GO/NO GO decision based on the

program objectives

• System Builds and Installations in California September 2010• Begin External Reliability Fleet Testing September 2010• Complete System Model December 2010

– UCI will verify system model against reliability fleet results

• 2nd GO/NO GO Decision September 2011– Based on achievement of the program objectives the team will decide whether or not to invest

in upgrading the fleet and continuing long term testing

• Perform Economic Analysis December 2011– Using fleet performance data, Plug Power will publish an economic analysis of the viability of

this CHP technology

• Complete Long Term Testing September 2012

PROPOSED FUTURE WORK

Highly Efficient CHP Fuel Cell Durability and Economic Value Demonstration

• Plug Power believes that high-temperature PEM fuel cell technology creates a compelling value proposition in the residential and light commercial micro-CHP market

• Plug Power and its partners are executing a meaningful, long term, reliability testing program and economic analysis to gauge this technology’s readiness for the marketplace

• The program has strong collaboration with industry, government agencies and national labs in order to effectively evaluate the technology’s performance

• The program is off to a good start, evaluating the early data and making system and process improvements in order to harden the design

SUMMARY

HEADQUARTERS968 Albany-Shaker Road Latham, New York 12110 Phone: (518) 782-7700 Fax: (518) 782-9060

CANADA13120 Vanier PlaceRichmond, British ColumbiaV6V 2J2Phone: (604) 303-0050 Fax: (604) 231-0400

www.plugpower.com